Treasury Secretary: U.S. Has Yet to Open Formal Trade Talks With China

Despite mounting economic tension and record-high tariffs between the world’s two largest economies, Treasury Secretary Scott Bessent confirmed Tuesday that the United States has not entered into any formal trade negotiations with China.

“China, we have not engaged in negotiations with as of yet,” Bessent said during a House Appropriations Committee hearing.

He did not clarify whether either side had attempted to initiate discussions. Fox News Digital reached out to the White House for further comment but received no immediate reply.

President Donald Trump’s administration has been aggressively reshaping global trade policy, and on April 2, announced a sweeping package of new tariffs on several countries, citing what it called “unfair” trade practices targeting the U.S.

After initially floating an even broader plan, the administration revised its approach on April 9. Under the new terms, tariffs on Chinese imports were immediately increased to 145%, while duties on goods from other countries were lowered to a baseline of 10% for a 90-day trial period. In response, China hiked its own tariffs on American goods to 125%.

Although President Trump has shown interest in eventually reducing some of the tariffs imposed on Chinese imports, he has made clear that the U.S. will not be the first to offer concessions.

“At some point, I’m going to lower them because otherwise you could never do business with them,” Trump said in an interview that aired Sunday on NBC’s Meet the Press with Kristen Welker. “They want to do business very much … their economy is collapsing.”

Speaking to reporters aboard Air Force One, President Trump reiterated that he’s open to a “fair” trade deal with China and that ongoing discussions are addressing a broad range of issues.

Chinese officials have signaled a willingness to return to the negotiating table, but insist that the U.S. must first roll back the tariffs to demonstrate serious intent.

“The tariff and trade wars were unilaterally initiated by the U.S. If the U.S. side wants to talk, it should show its sincerity, and be ready to take action on issues such as correcting wrong practices and canceling the unilateral imposition of tariffs,” China’s Ministry of Commerce said in a statement Friday.

President Trump has long backed the use of tariffs as a tool to restore U.S. manufacturing strength and correct trade imbalances. The White House has pointed to America’s $1.2 trillion trade deficit in 2024 as justification for the tough stance.

Earlier this month, Bessent predicted that the current tariffs could lead to major job losses in China unless Beijing reverses course.

“I think that over time we will see that the Chinese tariffs are unsustainable for China,” Bessent told reporters at the White House on April 29. “I’ve seen some very large numbers over the past few days that show if these numbers stay on, Chinese could lose 10 million jobs very quickly. And even if there is a drop in the tariffs that they could lose 5 million jobs.”

“So remember that we are the deficit country,” Bessent added. “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They’re unsustainable for them.”

While discussions with China remain stalled, Bessent also told lawmakers that the U.S. has been actively working with other countries and that new trade deals could be announced “as early as this week.”

Despite the lack of formal talks, signs of movement are emerging. Chinese authorities have already begun quietly scaling back tariffs on a significant portion of U.S. goods. According to recent reports, nearly 25% of American imports—totaling $40 billion—have been exempted from the 125% tariffs. This includes pharmaceutical products and industrial chemicals, which will now reach Chinese consumers without the steep duties.

The move is widely seen as a signal from Beijing that it is seeking to soften the economic blow from President Trump’s aggressive 145% tariffs.

On Friday, a spokesperson for Chinese President Xi Jinping said officials are “evaluating” the administration’s latest proposal—marking a notable shift in tone that could open the door for high-stakes negotiations to reshape the U.S.-China trade relationship.